Ann: Chairman's Address to Shareholders, page-24

Thanks CNC.

One concern I do have with MML is that the margin (Gold Price minus AISC) never seems to flow through to the cash balance and it is usually going backwards. It is a problem with underground miners in general. I believe for the most part this is due to the heavy investment being undertaken on the mine in the last 2 years and once the service shaft is complete things will change.

The price is now low enough for me that I'm willing to take that risk. I think Australian gold producers have largely had their run (for this leg anyway) except for some such as DRM and RRL and I would like exposure to US$ gold. MML being unhedged with one of the highest AISC (currently) offers very good leverage.

Other thing I like is the relatively tight share structure. Only 200M on issue. The company is in comparable position to BDR but BDR has 800M+ shares on issue.